More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

@Ricky Hernandez  We bought in two different communities that had no rental restrictions then later imposed cap of 10% rentals. 

@Deirdre Lizio see a lot of competiting PMCs start with a pledge of doing it better than "what's out there".Always interesting to revisit them 3-5 years later - after they've experienced the reality of challenging tenants AND owners.Look no further than Evernest: they started out with flat fee management at $99/month and promises of better & fairer service & pricing.Now they're at 10%, capped at $199/month - wonder what changed?

Note: We do 50+ investment property loans a month and the most important thing I tell BUYERS of properties being sold as or soon to be STR is make sure you are paying the market price per square foot and do NOT buy based on income approach/CAP rate.

The price is much more expensive than Midwest, but the yield or cap rate, particularly commercial properties, are similar to Midwest.SFR may have a lower cap, in good area.

With your balance sheet and cash, you can put together creative deals without giving up equity and without using your cash but you are going to need to find a market and product which has 7-8% cap rates.I invest in the northeast, Great Lakes area.Diverse economies with education, healthcare as the back bone and tech as growth.In your area, you’ll have to raise way more capital in the form of equity just to meet DSCR with the banks.

Properties are not like stocks where After IPO the market cap is so large that that most of the life changing appreciation is gone. 

The key to the cheap ones really is the cap-ex over time.

I am not sure what my next move is (stay with the DST and lose $ or move to the REIT and eventually have to pay cap gains tax if performance isn't good). 

The real issue is that they didn’t have a plan to monitor usage or set up protections to minimize costs during the eviction process.Ideally, the PM could’ve done things like:Limit access to unnecessary areas to reduce power use.Install smart thermostats to keep heat at a safe minimum.Request a utility cap in court during eviction proceedings (if allowed in your area).Bottom line: It’s less about the utility switch itself and more about proactively managing costs once the tenant overstayed.bro what?